2024 (11) TMI 187

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....(Stay) 1. The petitioner impugns the order dated 24 June 2024 passed by the Competition Commission of India [CCI]. While construing a report submitted by the Director General of Anti Profiteering [DGAP] for the consideration of the CCI upon conclusion of investigation as contemplated under Rule 129 (6) of the Central Goods and Services Tax Rules, 2017 [CGST Rules, 2017], the record would reflect that a reference appears to have been received from the Standing Committee on Anti-Profiteering on 02 July 2019 on the basis of which a detailed investigation was commenced. 2. The principal allegation was of the petitioner having engaged in profiteering in connection with the supply of "services by way of admission to exhibition of cinematogr....

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....gating this contention, the CCI has observed as follows:- "8. This Commission further finds that the Central and the State Governments had reduced the rates of GST on "Services by way of admission to exhibition of cinematograph films where the price of admission ticket was above one hundred rupees" from 28% to 18% w.e.f. 01.01.2019, vide Notification No. 27/2018-Central Tax (Rate) dated 31.12.2018, the benefit of which was required to be passed on to the recipients by the Respondent as per the provisions of Section 171 of the above Act. 9. The Commission finds that, one of the contentions of the Respondent was that that the entire proceeding are not maintainable in terms of Rule 128 of the CGST Rules, 2017 as the investiga....

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.... after informing the concerned authorities about the hiked prices. The Respondent has also contended that the DGAP failed to take into consideration that the prices being charged by the Respondent is within the maximum permissible limit set by the Regulating Authority. The Commission finds that the licensing authority only fixes the maximum price at which a movie ticket can be sold. Levy of GST is fixed by the GST Council which is a Constitutional body and all the State Governments are part of the GST Council. Section 171 of the CGST Act, 2017 and Rules made thereunder is limited to the extent of passing of benefit of rate reduction which the Respondent has to comply with. The fixing of the prices by the State Government or the lic....